Ever since the collapse of the Soviet Union, Cub has been inching towards capitalism -mostly in the form of tourism. Can Havana once again become "the Latin Las Vegas"?
Communist countries aren't known for being vacation hot spots, and for good reason. To have a thriving tourist sector, you need luxuries to offer and visitors willing to spend money on them. That's the stuff of capitalism. And yet, Cuba attracts about 2 million sightseers every year, mostly from Europe and Canada. That number is especially remarkable considering that two decades ago, Cuba's tourism industry was not only nonexistent, it was outlawed.
FROZEN DAIQUIRIS
Cuban tourism was banned in 1960 as part of the Communist Revolution. Shortly after Fidel Castro came to power, his regime closed the island's internationally renowned hotels. He also cracked down on prostitution, gambling, and illicit drugs -trades that had made the country a den of hedonism. As Castro saw it, tourism was a form of capitalist exploitation in which the rich pleasured themselves on the backs of the poor. He felt that Americans used the island as a playground with little concern for the welfare of those who lived there. In his new country, Cuban citizens would be equal; no one would stay at luxury hotels until everyone could stay at luxury hotels.
THE TOURISM APARTHEID
During the 1990s, the Cuban government poured $3.5 billion into rebuilding the tourism industry, restoring old hotels, nightclubs, beach resorts, and churches, some of which date back 500 years to the Spanish colonial era. Still, because tourism is antithetical to the communist ethos, Castro tried to keep the sector as separate from most Cubans as possible. Cuban citizens weren't allowed to enter tourist establishments, and by the same token, tourists weren't allowed into areas designated for regular Cubans. To further distance citizens from foreigners, Castro's regime created two separate currencies: the peso for Cubans, and convertible pesos, or CUCs (pronounced "kooks"), for tourists. Most businesses in Cuba accepted one currency or the other, but not both.
In effect, Castro had blocked contact between tourists and the vast majority of the population, Suddenly, Cubans were second-class citizens in their own country, just as they had been before the Revolution. The new system became known as "tourism apartheid."
Tourism has also brought back the capitalist practice of tipping. Taxi drivers, musicians, tour guides, waiters, bartenders, and bellboys are coveted occupations because they receive tips, one of the few ways to get ahead on the island. A Cuban guitarist earning just $200 a month in tips makes 10 times the average government wage -far more than most Cuban doctors.
THE POWER OF THE SMALL BUSINESS OWNER
Since assuming the office of president full-time in 2008, Raul Castro has continued to make small changes to foster free enterprise. Aside from ending tourist apartheid, he's also granted hundreds of thousands of new licenses to family businesses. Outside the tourism sector, he's passed massive agrarian reform, allowing farmers to sell their produce directly to consumers. And now that a few people in Cuba have disposable income, Raul has made it easier for them to spend it. In the past three years, he's made it legal for Cubans to rent cars, renovate their homes, and buy computers, cell phones, DVD players, and other electronics -all of which had previously been banned. Although Cuba is still not a market economy, it's impossible to deny that times are changing.
The American government has been responsive to the expanding freedoms. In 2009, president Obama made it easier for Cuban-Americans to send money to their families back in Cuba. Then, in January of 2011, Obama made it legal for any American to send up to $500 every three months, so long as the money goes toward funding private enterprise in Cuba. In other words, if you have a friend in Havana, and you want to help him start a restaurant, all you have to do is write him a check. The embargo may soon come to an end, and not because Americans renounced the Cuban economy, but because they helped rebuild it, one small business at a time.
Yes, they can, and it's getting easier to do all the time. Although it's still illegal for Americans to visit Cuba simply for pleasure, since 1999 the United States has allowed Americans to travel to Cuba for journalistic and educational purposes. If you're a reporter on assignment or a doctor attending a medical conference, it's perfectly legal to fly there. Also, as of 2009, Cuban-Americans are allowed to visit their relatives in Cuba as frequently as they'd like. Under the old rule, they were only permitted once every three years. In fact, today, there are nonstop flights to Havana from New York, Los Angeles, and Miami, and that list stands to expand.
There are plenty of ways to visit Cuba illegally, too. Tourists simply fly to Mexico or Canada and then catch another plane there. The Cuban government won't stamp your passport anymore; they know that some Americans have gotten into trouble when they returned to the United States with a Cuban seal on their books. These days, Cuban officials at customs simply hand you a tourist visa, which gets stamped instead. So unless you try to smuggle a carton of cigars back in your suitcase, odds are, the government will never know you were there. An estimated 20,000 to 60,000 Americans travel illegally to Cuba every year.
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Communist countries aren't known for being vacation hot spots, and for good reason. To have a thriving tourist sector, you need luxuries to offer and visitors willing to spend money on them. That's the stuff of capitalism. And yet, Cuba attracts about 2 million sightseers every year, mostly from Europe and Canada. That number is especially remarkable considering that two decades ago, Cuba's tourism industry was not only nonexistent, it was outlawed.
FROZEN DAIQUIRIS
Cuban tourism was banned in 1960 as part of the Communist Revolution. Shortly after Fidel Castro came to power, his regime closed the island's internationally renowned hotels. He also cracked down on prostitution, gambling, and illicit drugs -trades that had made the country a den of hedonism. As Castro saw it, tourism was a form of capitalist exploitation in which the rich pleasured themselves on the backs of the poor. He felt that Americans used the island as a playground with little concern for the welfare of those who lived there. In his new country, Cuban citizens would be equal; no one would stay at luxury hotels until everyone could stay at luxury hotels.
(Image credit: Flickr user Tom Graham)
THE TOURISM APARTHEID
During the 1990s, the Cuban government poured $3.5 billion into rebuilding the tourism industry, restoring old hotels, nightclubs, beach resorts, and churches, some of which date back 500 years to the Spanish colonial era. Still, because tourism is antithetical to the communist ethos, Castro tried to keep the sector as separate from most Cubans as possible. Cuban citizens weren't allowed to enter tourist establishments, and by the same token, tourists weren't allowed into areas designated for regular Cubans. To further distance citizens from foreigners, Castro's regime created two separate currencies: the peso for Cubans, and convertible pesos, or CUCs (pronounced "kooks"), for tourists. Most businesses in Cuba accepted one currency or the other, but not both.
In effect, Castro had blocked contact between tourists and the vast majority of the population, Suddenly, Cubans were second-class citizens in their own country, just as they had been before the Revolution. The new system became known as "tourism apartheid."
(Image credit: Flickr user somebody_)
Tourism has also brought back the capitalist practice of tipping. Taxi drivers, musicians, tour guides, waiters, bartenders, and bellboys are coveted occupations because they receive tips, one of the few ways to get ahead on the island. A Cuban guitarist earning just $200 a month in tips makes 10 times the average government wage -far more than most Cuban doctors.
THE POWER OF THE SMALL BUSINESS OWNER
Since assuming the office of president full-time in 2008, Raul Castro has continued to make small changes to foster free enterprise. Aside from ending tourist apartheid, he's also granted hundreds of thousands of new licenses to family businesses. Outside the tourism sector, he's passed massive agrarian reform, allowing farmers to sell their produce directly to consumers. And now that a few people in Cuba have disposable income, Raul has made it easier for them to spend it. In the past three years, he's made it legal for Cubans to rent cars, renovate their homes, and buy computers, cell phones, DVD players, and other electronics -all of which had previously been banned. Although Cuba is still not a market economy, it's impossible to deny that times are changing.
The American government has been responsive to the expanding freedoms. In 2009, president Obama made it easier for Cuban-Americans to send money to their families back in Cuba. Then, in January of 2011, Obama made it legal for any American to send up to $500 every three months, so long as the money goes toward funding private enterprise in Cuba. In other words, if you have a friend in Havana, and you want to help him start a restaurant, all you have to do is write him a check. The embargo may soon come to an end, and not because Americans renounced the Cuban economy, but because they helped rebuild it, one small business at a time.
(Image credit: Flickr user Frans Persoon)
Yes, they can, and it's getting easier to do all the time. Although it's still illegal for Americans to visit Cuba simply for pleasure, since 1999 the United States has allowed Americans to travel to Cuba for journalistic and educational purposes. If you're a reporter on assignment or a doctor attending a medical conference, it's perfectly legal to fly there. Also, as of 2009, Cuban-Americans are allowed to visit their relatives in Cuba as frequently as they'd like. Under the old rule, they were only permitted once every three years. In fact, today, there are nonstop flights to Havana from New York, Los Angeles, and Miami, and that list stands to expand.
There are plenty of ways to visit Cuba illegally, too. Tourists simply fly to Mexico or Canada and then catch another plane there. The Cuban government won't stamp your passport anymore; they know that some Americans have gotten into trouble when they returned to the United States with a Cuban seal on their books. These days, Cuban officials at customs simply hand you a tourist visa, which gets stamped instead. So unless you try to smuggle a carton of cigars back in your suitcase, odds are, the government will never know you were there. An estimated 20,000 to 60,000 Americans travel illegally to Cuba every year.
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The article above, written by Jennifer Drapkin, is reprinted with permission from the July-August 2011 issue of mental_floss magazine. Get a subscription to mental_floss and never miss an issue!Be sure to visit mental_floss' website and blog for more fun stuff!
Looks like Cuba in the fifties. Talk about progress!
And turn the blind eye on how cleverly China fights 'capitalist' countries by making them increasingly dependent on China?
Yes, Canadians have no problem travelling to Cuba. It's a popular destination. Did you know people pack all sorts of stuff to give to the people because they have nothing? Clothing, etc... it's like tipping people with material goods.
But apparently still dangerous enough for the USA to ban all trade.